STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Nov 27, 2004

 

During the week the market remained range-bound despite the expectation that the KSE-100 could make further gains. Some exceptional interest was evident in PTCL. The other scrips registering major activities were OGDC and PPL. Some activity was also witnessed in banking and fertilizer sectors. In the forthcoming weeks the market is expected to remain either range-bound or experience technical correction due to rising volume of Badla investment and rates. The other factor having the potential to set in declining trend is said to be the rising interest rates. The latest

 

 

 

 

OMO and T-Bills witnessed two key phenomena, increasing cut of yields and emerging liquidity crunch. The other factors contributing to possible exit of funds from the equities market are said to be re-emergence of dollarization trend and rising gold price in the global markets. The higher international prices are also pushing up gold price in the domestic markets. While the volatility of crude oil prices remains a serious concern, the increase in country's foreign exchange reserves provides some respite.

The stock market received a much-needed booster with the announcement of improved rating by the Standard & Poor's. This has raised Pakistan's credit rating on foreign currency debt by one notch. The revision in rating was expected due to improving outlook for the country. According to the rating agency, the revision in rating has been mainly driven by an improvement in the economic performance of the country along with a reduction in the country's foreign debt. The macro indicators have shown an improvement over the last time the ratings were assigned. Although, Pakistan is experiencing a widening of current account deficit, the current level of foreign exchange reserves are likely to be more than sufficient to meet this gap.

The Privatization Commission has sought a firm price from the lead manager for the initial public offering of shares of Kot Addu Power Company. Reportedly, the lead manager had suggested a price range of 24 to 37 rupees per share for the public offering. However, the commission has asked to submit a firm price, as a range would be more confusing in deciding the offering price. The Commission also indicated that the public offering of the company could be delayed by another few weeks due to delay in the fixation of the price.

Atlas Asset Management Company has announced the launching of two mutual funds. Atlas Stock Market Fund is an open-end fund and Atlas Fund of Funds is a closed-end fund.

OGDC

The company has hit a second discovery in the northern region as an operator. The Dakhani field will produce 11MMCF of gas 750 barrels of oil. Although the production will not significantly contribute towards the over all production, the success in upcountry is positive for OGDC. The recent upsurge in oil prices also bodes well for the company.

SUI NORTHERN GAS PIPELINE

The company has released financial results for the year ended June 30, 2004 and also announced distribution of 25% final dividend. The delay in announcement is attributable to its presentation to the Oil and Gas Regulatory Authority seeking higher capitalization of the assets. The authority turned down its request by disallowing capitalization of assets worth Rs 866 million. However, the assets are expected to be capitalized in the due course and with the approval of the Authority, This will certainly have a positive impact on the earnings of forthcoming years.

BOC PAKISTAN

The company has released its financial results for the year ended September 30, 2004 and also announced 100% dividend. This is in addition to already paid 30% interim dividend. Raising the total payout for the year to 130%. The company had paid 120% dividend at the end of last financial year. The higher payout can be attributed to improved bottom line due to increase in sales. Net sales went up from Rs 1,386 million to more than Rs 1,521 million. Gross profit improved from Rs 585 million to about Rs 680 million. While other operating expenses went up, there was substantial decline in other operating income. However, the fall in profit was partly compensated by the reduction in financial charges.

ATTOCK REFINERY

Reportedly the Securities and Exchange Commission of Pakistan directed the Attock Refinery to drop the item No.5 and not present the same before the shareholders for the approval in the extra ordinary general meeting. The commission has advised that it is premature to consider the item. This was regarding authorizing Attock Refinery to purchase the shares of Attock Petroleum through stock exchanges from the general public to the extent that its total shareholding in Attock Petroleum is enhanced to 40%. Attock Petroleum has not been formally listed at the local stock exchanges and its shares are yet to be offered.

 

 

Company High Low Closing

 Week's Turnover

Fauji Fert Bin

24.50

22.95

24.50

250,932,000

Oil & Gas Dev.X

66.65

65.85

66.65

100,711,700

P.T.C.L.A XD

40.80

40.35

40.40

95,531,000

Sui North Gas

54.30

52.55

54.30

50,924,500

Lucky CementXB

38.95

38.10

38.70

45,834,500

National Bank

72.60

72.10

72.60

38,053,200

Hub PowerXD

30.25

29.90

30.20

36,214,000

Pak PetroleumXD

121.90

119.45

121.90

20,715,800

Fauli Fert.XB

122.00

119.75

122.00

12,787,100

Sui South GasXD

25.40

24.80

25.40

12,451,500